Chicago PMI falls less than expected

The Chicago purchasing manager's index for July slipped
to 55.8 in July.

Economists had forecast that the business barometer fell to 54
from 56.8 during the month, according to Bloomberg. It
remained above 50, the border between expansion and
contraction.

After a surge in June, new orders and production fell a bit in
July.

"On the upside, it was the first time since January 2015 that all
five barometer components were above 50,"
said Lorena Castellanos, a senior economist at MNI
Indicators.

"Another positive came from the Employment Indicator. Although
it’s still relatively weak, should July’s increase hold then it
could be read as a tentative sign of growing business confidence
about economic growth ahead," she said.

Last month, the index rose to its highest level since January
201. Businesses also ended a seven-month run in contracting
inventories.